Unintended Consequences of Welfare Cuts on Children and Adolescents

Christian Dustmann · Rasmus Landersø · Lars Højsgaard Andersen

10 citations0/0 files storedAmerican Economic Journal Applied Economics

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Gender, Labor, and Family Dynamics Family Dynamics and Relationships Poverty, Education, and Child Welfare

Abstract

This paper studies the effects of a large welfare benefit reduction on the children in the affected families. The welfare cut targeted adult refugees who received residency in Denmark, and it reduced their disposable income by 30 percent on average over the first five years. We show that children exposed to the welfare cut during preschool and school-age obtained lower GPAs, experienced reduced well-being and overall education levels, and suffered lower employment and earnings as adults. Children in their teens at exposure faced large increases in conviction probabilities for violent and property crimes. (JEL I26, I31, I38, J13, J15, J31, K42)

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1938Social Structure and Anomie 2007The Technology of Skill Formation 2011To read or not to read: A meta-analysis of print exposure from infancy to early adulthood.1982The Cost of Inequality: Metropolitan Structure and Violent Crime 1996Labor Supply Response to the Earned Income Tax Credit 2012The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit 2001Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers 2007New Evidence on the Monetary Value of Saving a High Risk Youth

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